LSI 2010 Real Estate Joint Ventures conference materials.pdf
LSI 2010 Real Estate Joint Ventures conference materials.pdf
LSI 2010 Real Estate Joint Ventures conference materials.pdf
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Gregory K. Johnson of Wright Runstad & Company<br />
Preston R. Sargent of Kennedy Associates <strong>Real</strong> <strong>Estate</strong> Counsel, LP<br />
Speaker 5: 7<br />
Speaker 6: 7<br />
<strong>Real</strong>ly Great Deal<br />
Total Cost = $100<br />
Land $15<br />
A&E $7<br />
Const $55<br />
Mktg $3<br />
Interest $6<br />
Net Carry $5<br />
Dev Fee $4<br />
Contingency $5<br />
Annual Rents = $15<br />
Annual Expenses = $5<br />
Annual NOI = $10 10% Return on Cost<br />
Like Properties Sell @ 8% Cap Rates<br />
Developed Value = $125<br />
13<br />
$35 Equity<br />
$100<br />
$65<br />
Leased at<br />
$15/yr<br />
Expenses of<br />
$5/yr<br />
NOI = $10/yr<br />
Cap NOI at<br />
8%<br />
Value=$125<br />
<strong>Real</strong>ly Great Deal<br />
Total Cost = $100<br />
Construction Loan<br />
65% LTC<br />
14<br />
Law Seminars International | <strong>Real</strong> <strong>Estate</strong> <strong>Joint</strong> <strong>Ventures</strong> and Funds | 02/08/10 in Seattle, WA
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